FDIC Announces 45-Day Extension Of Comment Period On Proposed Modifications To Its Regulation Regarding The FDIC Official Sign, Advertising Statement, Others
By Godson Umejiego, Bureau Chief, The Americas
The Federal Deposit Insurance Corporation (FDIC) has announced a 45-day extension to the public comment period for proposed changes to its regulations relating to the FDIC’s official sign, the FDIC’s official advertising statement, misrepresentations of deposit insurance coverage, and misuse of the FDIC’s name or logo. Comments must be received by the FDIC no later than April 7, 2023.
On December 13, 2022, the FDIC announced a Notice of Proposed Rulemaking (NPR) to modernize part 328 of its regulations and provided for a 60-day comment period following formal publication in the Federal Register (87 FR 78017), which occurred on December 21, 2022. After receiving requests to extend the comment period, the FDIC determined that a 45-day extension of the comment period is appropriate and will provide additional opportunity for the public to prepare comments and address the matters raised by the NPR.
The proposed regulation would modernize the rules governing the use of the official FDIC sign and insured depository institutions’ (IDIs’) advertising statements to reflect how depositors do business with IDIs today, including through digital and mobile channels. The proposed rule also would clarify the FDIC’s regulations regarding misrepresentations of FDIC deposit insurance coverage by addressing specific scenarios where consumers may be misled about whether their funds are protected by deposit insurance. The changes would enable consumers to better understand when they are doing business with an IDI and when their funds are covered by the FDIC’s deposit insurance.